Question : If a consumer's income rises or the price of a complementary good falls, the-
Option 1: The product's demand curve shifts to the right.
Option 2: The product's demand curve shifts to the left.
Option 3: The product's supply curve shifts to the right.
Option 4: The product's supply curve shifts to the left.
Correct Answer: The product's demand curve shifts to the right.
Solution : If the price of one of its complements rises, the demand for the good decreases. The demand for a normal good increases if income increases. Hence it will shift rightward. So option a is the correct answer.
Question : Demand contraction occurs when:
Question : The law of demand states that when _____.
Question : If a consumer's demand for a good moves in the same direction as the consumer's income, the consumer's demand for that good must be inversely related to the price of the good, which is called _____.
Question : For an inferior good , demand falls when
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